VREIT has a very high dividend yield of 12%, reflecting the high risk that investors attach to it. Although it currently reports an occupancy rate of 97%, it looks like that will not be maintained in the future if we believe what netizens on X are saying:
-
DDMP REIT investors rarely get updates from this sleepy REIT and it’s easy to forget that this is the second oldest REIT we have. As a refresher, DDMPR owns a 4.7 hectare property, its namesake, DoubleDragon Meridian Park.
At the time of its IPO in 2021, the buildings in light green above were under construction. A lot has happened since then, including the POGO ban which adversely affected DDMPR’s income and subsequently the dividends.
(more…) -
The recent decision by the Energy Regulatory Commission (ERC) to suspend the provisional authority of S.I. Power Corporation (SIPCOR) has sent shockwaves through the Philippine energy sector, and its effects are expected to reverberate directly to Premiere Island Power REIT (PREIT). The move, prompted by SIPCOR’s “multiple violations” and its failure to provide a reliable power supply to Siquijor province, poses a significant threat to PREIT’s financial and operational stability.
(more…)
A Shared Foundation, A Single Point of Failure
PREIT, a real estate investment trust, was specifically established to hold the real estate assets of its sponsors, which include SIPCOR. The core of PREIT’s initial portfolio consists of land and power plant assets that are leased to and used by its sponsors, including SIPCOR’s heavy fuel oil (HFO)-fired power plants in Siquijor. In essence, PREIT’s revenue stream is directly tied to the operations of its sponsors, with SIPCOR being a primary source of that income through its lease agreements. -
In the world of real estate investment trusts (REITs), a high dividend yield can be an alluring prospect, promising significant income streams for investors. However, a yield that appears “too good to be true” often comes with an unspoken caveat: increased risk. The market, in its collective wisdom, tends to price in perceived risks through various mechanisms, and a higher yield in the REIT space can frequently be a reflection of such concerns.
The Inverse Relationship: Yield and Risk
(more…)
At its core, the yield of a REIT is calculated by dividing its annual dividend per share by its current share price. When a REIT’s share price falls, its yield increases (assuming dividends remain constant). A prolonged or significant drop in share price often signals that the market views the underlying assets, management, or future prospects of the REIT with apprehension.
philreitinvestor.com 